Shock over extra Labuan port charges
Published on: Sunday, April 05, 2020
By: Iffah Dilaney
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LABUAN:
Labuan Freight Forwarders (LFFA) are dismayed over the additional port charges that will eventually be passed on to consumers by newly-appointed Labuan port operator Megah Port Management Sdn Bhd, said its President Prunella Phoong (pic).In a statement on Saturday, she said the schedule of rates offered by the new port operator was uploaded onto its website on March 28 and the association members have downloaded the rates, studied and did a comparison to the rates offered.
“Much to our dismay, we noticed there were additional charges which would impact shipowners and which were not charged in the last 22 years by former port operator of Labuan Liberty Port Management (LLPM).
“Members of the association, vessel owners who call at Labuan Liberty Port and port users were not consulted by Labuan Port Authority (LPA) prior to publishing the rates. Thus, LFFA raised our concerns with the Ministry of Transport and also with the LPA.
Labuan MCA chief Datuk Chin Hon Vui said the LFFA’s issue on the additional charges and port related issues including the port tariff had been brought up to the attention of Minister of Transport Datuk Seri Dr Wee Ka Siong.
Prunella said following the move, Megah Port Management had on the April 1, informed port users they would do the following:
l Wharfage and berthage charges for vessels that calls at Labuan Liberty Port between April 1 till April 30 2020 – Waived.
l Container storage charges applicable for consignees from April 1 to 8 – Waived.
l Container storage charges from April 9 to 30 – 50 per cent discount for container storage charges.
l LPA, General Manager, Zulkurnain Ayub conveyed they will discuss the rate options further with Megah Port Management Sdn. Bhd, after the MCO is lifted and called for a meeting of port users and Megah Port Management Team.
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Prunella said Labuan’s business community depends on all imports or exports either by air, sea or land mode.
“Being a duty-free-port, imports by sea makes up to at least 70 per cent of import market as most imports are for the oil and gas sector.
“With Covid-19, the drop of oil prices, coupled with this additional difference in port operations rates for discharging of consignments, we may see additional cost on imports:
1. Ship Owners may charge the additional charges under a different shipping term.
2. Additional Port Charges would at the end be transferred to consumers when when the consignment gets onto the shelves of the shops.
“Our local community, almost all small and medium enterprises (SMEs) after COVID 19, would need time for recovery.
“Thus, our appeal to Labuan Port Authority and Megah Port Management is to consider extending the waiver period for wharfage and berthage charges as well as the other charges added on for the vessel to call at port to help the SME recover before implementation of full published rates.
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Megah Port Management has on April 1 discharged 185 TEUs (total equivalent units) from the vessel MTT Pulau Pinang Voyage 20PP129E and loaded 57 TEUs between the April 1 and 2, thus at this rate of operation.
“We hope that the shipowners who had to wait for three to four days to clear their vessel in the past when they called at Labuan, can make up the berthage cost with a shorter port call and pass on the savings to the consignees and consignors of the consignments.
“We, the freight forwarders and port users require an improvement to port operation services to attract more vessels to call into Labuan port, if we are to support a new Digital and Transshipment Hub and fully use the attraction of the duty-free-port.
“It is only fair we give the opportunity for Megah Port Management to show proof of their commitment to Labuan Port Authority and the port users that they can improved port performance,” she said.
